Peter George will get a special payout of $1.4 million, plus a six-figure pension, when the president of McMaster University retires, according to his employment contract released yesterday.

McMaster gave The Spectator a copy of George's contract, with full details of his perks and job entitlements, after battling nearly two years to prevent its disclosure.

It shows that George, who earned $504,792 in salary and basic benefits last year, is entitled to the $1.4-million payout when he leaves at the end of this five-year term.

The money is to be paid in annual instalments of $100,000, for 14 years, starting just after he retires in 2010. The payments compensate for leaves of absence, to which George is entitled but has not been able to take due to the time pressures of his job.

It is the first glimpse of the full details of an Ontario university president's contract, and McMaster told its employees the disclosure is bound to generate coverage.

"Much of the focus will likely be on the practice by universities across the country to grant leaves after a faculty member has served in a senior administrative role," says a message posted on McMaster's Daily News website.

The payments are in addition to a pension of about $320,000 a year, plus medical and dental benefits.

The Spectator asked for the contract in August 2006, under Ontario freedom of information legislation, which had just been extended to universities that June.

It became a precedent-setting test case after Mac balked at the request, arguing universities are autonomous of government and its officials are not public servants. So universities should not be subject to the disclosure required of other publicly funded bodies, it said.

The Information and Privacy Commissioner ruled against Mac, saying the act was extended in 2006 "to ensure Ontario universities are subject to the same degree of transparency and accountability as other government institutions."

The commission ordered McMaster to give the contract to The Spectator by the end of February. But Mac said it would rather go to court than abide by the ruling.

But board chair Colum Bastable said McMaster has abandoned a judicial review request due to "the distraction, people's time and the cost of dealing with this process."

Mac argued disclosing contract details, as is done across the public sector, would breach George's privacy and cause him personal harm.

Bastable said all contract benefits are deserved, given George's "unique set of talents" and his successes for the university.

"There aren't too many people out there with the skill sets to carry this kind of role," said Bastable, CEO of the real estate services firm Cushman & Wakefield LePage.

He said George's perks are modest when compared to some benefits common in the business world, such as mortgage loans, housing allowances and luxury cars.

The contract also includes:

• A $20,000-a-year "health care spending account" to reimburse health-related expenses not covered by regular university plans.
• Up to $30,000 over the five-year contract term to cover personal "financial estate planning."
• Membership fees and levies for the Hamilton Golf & Country Club and the Hamilton Club.
• Annual research allowance up to $7,500 for scholarly activities.
• Travel, entertainment and related expenses for activities surrounding the president's duties.
• A non-luxury car allowance, currently less than $11,000 a year.
• Business class air travel when a flight is more than four hours long.

There is also a one-time $17,110 bonus for past performance, given in July 2005, when George's five-year contract went into effect.

jwalters@thespec.com
905-526-3302